IPAC University

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Transcript of IPAC University

GWA in general has file size limitations: Facts:The system does not respond well to Primary and Secondary records that exceed roughly1,000 lines IPAC will build the capability to parse a file that is greater than an established limit (no agency involvement needed)File size has not been determined yet; however, the limit per transmission to GWA/IPAC/CARS needed to be addressed. This is the beginning of that effortCustomer Relationship Management Division – IPAC Transition CoordinatorLuz Davila Lopez, Luz.Davila.Lopez@fms.treas.gov, 202-874-8599IPAC System LeadDominique McCreary, Dominique.McCreary@fms.treas.gov, 202-874-6352Contact InformationOn October 1, 1985, the Department of the Treasury (DT) implemented the Online Payment and Collection (OPAC) system, a component of the Government On-line Accounting Link System (GOALS), to provide Agencies with an automated means to transfer monies between Government Agencies.

In December 1996, FMS started an initiative to replace the OPAC application with the Intra-governmental Payment and Collection (IPAC) system. This initiative was to improve the intra-government process and reporting ability through the use of both on-line and bulk transmission capabilities. FMS implemented the IPAC system in December 2001Welcome to Intragovernmental Payment And Collection (IPAC) UniversitySummer School!Walter Lord History BldgIPAC: A New FrontierGet your ticket now, Next StopIPAC Website: www.fms.treas.gov/ipac

The system does not have the logic to know what TAS the Agency is referring to- Question: Tell me the FY in this example? 20 3 1801In this case IPAC will send a blank TAS and the agency will have to reclassifyTAS Format BreakdownString to Component200/31801Component TASString TASSP ATA AID BPOA EPOA A MAIN SUB BETC 020 2010 2013 1801 000 DISB or 020 2000 2003 1801 000 DISBTAS Format BreakdownString to ComponentNote: Crosswalk from String to component on the CARS website as well as authoritative database on the SAM websiteString TAS (reigning champion)Used by all Federal Agencies for the last 10 yearsSingle digit Fiscal year formatVarious forms of the string can be submittedCurrently, the TAS listing is listed on the CARS websiteString TAS is used to classify transactions on the account statement

Component TAS (Challenger)Currently used by most Federal Agencies the last 6 years.4 digit fiscal year formatOne Standard form for all AgenciesComponent form accepted by IPAC and various system across the governmentComponent TAS is used to classify transactions on the account statementStandardization Championship:String TAS vs. Component TASDemonstration1. What does IPAC stand for?

2. Name Two Types of Adjustment transactions

3. Can adjustments be prevented?

4. How do you setup your ALC to receive or limit the adjustment activity?

6. What format of the Treasury Account Symbol/Business Event Type Code (TAS/BETC) is used for Online transactions?

7. What format of the Treasury Account Symbol/Business Event Type Code (TAS/BETC) is used for Bulk File transactions?POP QuizAll on-line users are using the Component TAS when doing IPAC transactions:-The IPAC Find feature - must enter 3 fields for search: MAIN, AID, SUB-Once the appropriate TAS is found, a list of valid BETCs will be provided-The IPAC Enter Feature – allow for full entry of Component TAS, if it is known

Bulk File users have the option of using Component TAS or STAR String TAS

The Bulk File user option will change to Component TAS only on January 1, 2014!!!!!IPAC Facts (continued)IPAC System consists of multiple applications:-Intra-governmental Payment and Collection System (IPAC)-Retirement Insurance Transfer System (RITS)-Treasury Receivable Accounting and Collection System (TRACS)

Transfers a daily file of all transactions from the previous business day to CAFÉ Module of the GWA/CARS System

Funds never leave the government through IPAC

Approximately 258 agencies worldwide

Over 2,800 active users

FY 2012, more than 1.2 million transactions totaling more than $122 trillion processedIPAC FactsIPAC TodayWhat Do You Know About IPAC ?-POP Quiz Class Participation ( Q&A)Live Demo: Relationships/Profiles, Special ItemsIntra-Governmental Championship: String TAS vs. Component TAS-Tale of the Tape-Who wins and whyBulk FileTest/FinalContact InformationCourse SyllabusIPAC 101Professor McCrearyJuly 9, 2013IPAC: What you thought you knew1. Do agencies have the ability to set who they can receive adjustments/chargebacks from?2. What screen will an IPAC user navigate to setup their Trading Partner Relationship?3. Should your IAA, TPA or agreement that you have with an Agency mimic your billable relationship in IPAC?4. What does the acronym AID stand for?5. What date will IPAC bulk files receive only the Component TAS?6. If an agency needs more detailed information on there IPACs, what functionality can they set?7. Do funds ever leave the government when doing IPAC transactions?8. In order for your Component TAS to be properly accepted in your IPAC bulk file, what character should be input in position 27?9. Are you an IPAC CARS Reporter? Why?FinalWho wins?The IPAC application’s primary purpose is to provide a standardized interagency fund transfer mechanism for FPAs. It facilitates the intra-governmental transfer of funds, with descriptive data, from one FPA to another.How much does it cost You?The IPAC PurposeFoundation HallThe Answer4839Tell me how to translate this number?Everyone don’t stand up at once!Going to give you 5 more seconds to look at the key ready?4839Tell me how to translate this number?Back to the Question?Going to give you 5 seconds to look at the key ready?4839Tell me how to translate this number?The Question?6 = 67 = 78 = 89 = 90 = 01 = 12 = 23 = 34 = 45 = 5The Now!July 9, 2013The Ice BreakerHow well do you adapt to change?The Concept/Logic1 2 348397 8 94 5 66 = 7 = 8 = 9 =0 = 01 = 2 = 3 = 4 = 5 =The Translation6 = 7 = 8 = 9 =0 = 01 = 2 = 3 = 4 = 5 =The TranslationTransition plan due NOW (May 31, 2013)Take advantage of the your personal Tutors and parallel analysis opportunitiesThe only thing between Now and October 2014:- Help and Opportunity!

Your time is NOW!Review/DiscussionNo more Statement of DifferenceCapability to reclassify daily (full Reporters)Provisional View of the Account StatementOmit transactions reported with TAS/BETC from end of month reportingOnce you go Live…Data Analysis (Sample)Final Opportunity to review/analyze your dataFinal Parallel/Pilot Windows: - June/July- August/September- October/NovemberPilot Windows in 2014?Parallel/Pilot WindowsIPAC Special Requirements (cont’d)Trading Partner CommunicationMeet with the CRM Team (Personal Tutors)- Training- Business ProcessHomework - Communication with Trading Partners- Shared Accounting Module set up- IPAC Special RequirementsIn Preparation to become a ReporterStudy Guide:Not having to submit a SF-224 or 1219

Daily visibility of your TAS informationWhat is an IPAC ReporterUpdate to the CFO Letter – April 2013Transitions Plan past due!-Agency transition plan was due May 31, 2013-Did you make the date?

IPAC ReportersALC transitioning to CARS ReportersAs of June 201335%23%6%8%The FutureBenefits SquareIn summary, the future state of RITS is undergoing some major changes to improve the functionality of the system; comply with new reporting requirements; and the implementation of PL 112-96, the “Middle Class Tax Relief and Job Creation Act of 2012,” that made two significant changes to FERS that impacted the operational and reporting of withholding and contributions for Federal employees retirement, health and life insurance program benefits. These enhancement will be implemented in first quarter 2014. The TAS BETC/C-Key solution will aide in source system reconciliation.SummaryThe RITS Module will allow manual and bulk input of TAS BETC dataTherefore, when the drawdown happens both sides of the transaction will populate TAS BETCRITS will run in parallel the C-Key option and TAS BETC to accommodate system changesIPAC has not scheduled a deployment date yet; however, it could very well be after the Oct 2014 deadline (This update does not inhibit agencies migration to the CARS System)Phased SolutionOn-line process must allow capturing withholdings and contributions for both regular FERS and FERS RAE under each category

The total retirement will be the summation of Total CSRS Retirement and Total FERS Retirement and Total FERS RAE Retirement dollar amountsRITS FERS Enhancement Requirements(Future Environment – Business Process)RITS must be enhanced to also capture withholdings and contributions under FERS-RAE separately from FERS

The following FERS-RAE withholdings and contributions categories must be captured:- Withholdings and/or contributions - Regular- Military Reserve Technician- Special- Salary Offset- Re-employed Annuitants- Military DepositRITS FERS Enhancement Requirements(Future Environment)Payroll offices or service providers must enhance systems to capture and report FERS RAE data in compliance with new law

Payroll offices or service providers who use the bulk file layouts must create a new bulk file layouts to transmit FERS RAE data to RITSRITS FERS Enhancement Requirements(Constraints and Dependencies)Step 1: OPM schedules the drawdown in Manage ScheduleStep 2: The drawdown processesStep 3: The drawdown process completes successfullyStep 4A: The drawdown file is createdStep 4B: IPAC transactions are created based on 2812 data; C-Key is createdProcess StepsUnder the Federal Employees Retirement System (FERS) there are withholdings and/or contributions for:- Regular- Military Reserve Technician- Special - Salary Offset- Reemployed Annuitants- Military DepositBackgroundRITS is an electronic method of reporting withholdings and contributions for the

- Federal Employees Group Life Insurance Program

- Federal Employees Health Benefits Program

- Civil Service Retirement System

- Federal Employees Retirement System

RITS is a component of the Intra-Governmental Payment and Collection (IPAC) applicationWhat is the Retirement and Insurance Transfer System (RITS)?

Professor SimmonsJuly 9, 2013Retirement and Insurance Transfer System (RITS) UpdatesFor more information about RITS and FERS-RAE contact the following individuals:

Wanda Simmons, System Accountant(202) 874-7932

Jim Jenkins, Project Manager(202) 874-9864ContactsWhen you become CARS Reporter (and currently) and want to reconcile at the detail TAS BETC level you could not because these fields in IPAC will be blankYou would have to check the Account Statement for those transactions you set the C-Key up forDisconnectAgency ImpactC-key vs. TAS BETCRITS ModuleRITS currently does not populate TAS BETC for the paying agency when OPM initiates their schedule drawdownRITS currently does populate a C-Key value for the paying agency when OPM initiates their schedule drawdownWhat does it mean for you?New Layout : Highlighted fields denotes changesThe FERS RAE should “mirror” the current layout.RITS FERS Enhancement Requirements(Future Environment - Bulk files Format for FPAs )On-line process must allow capturing withholdings and contributions for both regular FERS and FERS RAE under each category

The total retirement will be the summation of Total CSRS Retirement and Total FERS Retirement and Total FERS RAE Retirement dollar amountsRITS FERS Enhancement Requirements(Future Environment – Business Process)Public Law 112-96, Section 5001, the Middle Class Tax Relief and Job Creation Act of 2012 made the following changes to FERS coverage and determinations:

- First, beginning in 2013, new employees will have to pay significantly higher employee contributions, an increase of 2.3 percent of salary

- Second, new Members of Congress and Congressional employees, in addition to paying higher retirement contributions, will accrue retirement benefits at the same rate as regular employeesRITS FERS Enhancement Requirements(Future Environment)(changes are in yellow) Users PerspectiveCurrent Environment(Users Online Screen Shot)Current Environment(Business Process)Step 5A: OPM downloads the drawdown file into their systemStep 5B: IPAC transactions are sent to CAFEwith C-Key via the CAFE Daily File

NOTE: CAFE is responsible for interfacing with SAM to translate the C-Key into the appropriate associated TAS/BETCProcess StepsFPAs and/or agency providers submit RITS data via on-line (one transaction at a time or manual bulk upload) of bulk file automationRITS collects TAS information (excluding BETCs) for OPM’s side of the transactionThe FPAs and /or agency provider’s side of the transaction is blank and a C-Key value will populate the TAS informationRITS transactions are converted to IPAC transactions and sent to CARS/CAFE via the CAFE (IPAC) daily fileCurrent Environment(Business Process)RITS accumulates information from Federal Program Agency’s Payroll Office on the total amount of withholdings and related agency contributions

The payroll/report schedules is created and maintained by RITS

On a daily basis, OPM initiates a process to collect all RITS transactions due and submitted for payment- All health, retirement and life insurance program information is extracted and transmitted to OPM for processing- Simultaneously, transactions are generated for submission to IPAC for the transfer of funds to satisfy the obligations incurredCurrent EnvironmentRITS was jointly developed by the Office of Personnel Management (OPM) and the Bureau of Fiscal Service (BFS) (formally Financial Management Service) in partnership with the Federal Reserve Bank of Richmond

The Intra-governmental Payments and Collections (IPAC) system is proposing not to process Standard General Ledger (SGL) accounts within IPAC application (online and bulk file).- Online: The proposal is to modify the IPAC GUI- Bulk File: The proposal is to ignore processing of SGL data- Reports: SGL will be removed from all reports, except IPAC Archived Data ReportsQuestions?Planned strategy allows transition by phaseNew buy/sell workflow gradually introducedExisting Bulk File layout for Payment, Collections, and Adjustments will be supported until agencies transition to new workflowSummaryBulk File Layout- Updated specification with buy/sell business event data - Agencies can test new file layout before transition- XML can be supported if agencies are interestedReporting- More robust, flexible report optionsOther CapabilitiesBuyer will “Close” an agreement once goods are delivered or services completeOnce an agreement is closed:- No new orders- No additional fund transferNew reports related to Settlement and Closeout will be deployedSettlement & Closeout PhaseAgencies will negotiate Trading Partner Agreement and capture Minimum Accounting Data Elements (MADEs)New Agreement screen including MADEs will be developed and deployed into productionNew IPAC user roles will be introduced: BuyerSellerAgreement PhaseThe majority of MADEs are included in the standard interagency agreement (IAA) form, as well as in most existing agency-specific agreement formsOrder POC;Buy/Sell Transaction Type;Capitalized/Noncapitalized Indicator;Accrual/WIP Amount;Delivery Status;Delivery Amount;Collected Amount;Seller Unique IDAgreement PeriodOrder PeriodAgreement ActionOrder ActionAgreement amountOrder AmountAdvance/Non-advance IndicatorTAS

What are the MADEsFor more information regarding the IGT Transformation initiative, contact the following:

Jim Jenkins, Project Manager(202) 874-9865

Matt Conrad, IGT Team Lead(304) 480-7004ContactsSchedule7. Agreement Closeout Process Flow7. Agreement CloseoutDescription of UseAgencies will be able to request an adjustment to correct erroneous transfer of funds- Either the Buyer or Seller will be able to create an Adjustment transaction- Adjustment must be approved by trading partner- New reports related to Adjustments will be deployedData can be added either online or uploaded via bulk fileReceipt & Acceptance Phase (continued)The Buyer will have option to review transactionsThe Buyer will have option to accept or reject transactions prior to movement of fundsNew reports related to Advances and Invoices will be deployed

Receipt & Acceptance Phase(continued)Change from Payment and Collection to Advance and Invoice transaction types- Advances: If an Agreement allows Advance funding, Seller will initiate funds transfer- Invoices: For delivered goods or completed services, Seller will submit an Invoice to request movement of funds

Receipt & Acceptance Phase

6. Monitoring Agreement/Order BalancesDescription of Use3B. Business Rules for Invoice ApprovalDescription of Use3A. Setting Profiles for Invoice Approval Description of UseOrder, Accrual Phase & Uploading Documents (cont’d)Accrual transactions are for information purposes onlyNo funds will be transferredEntry of Accrual transactions should be entered for work in processAgencies will be able to exchange Accrual information within IPACSupporting documentation- Ability to upload and attach documents (e.g. PDF, Excel)- Attachment will link to the related IGT record- Both Buyer and Seller will have option to view contentSeller will enter Order details for goods/services- Data added either online or uploaded via bulk file- Order record(s) will link to the associated Agreement- New reports related to Order and MADEs will be deployed Buyer will have option to review order- Order and MADE data can be displayed online or by running a report - Buyer can modify or accept dataOrder, Accrual Phase & Uploading Documents2. Uploading and Linking DocumentsDescription of UseSeller will enter Agreement data and MADEs online in IPAC Buyer will be able to review Agreement and MADE data online or by running a report Buyer will have option to modify or accept the information New reports related to Agreements and MADEs will be introduced

Change in Process (cont'd)Existing IPAC capability will be leveraged for both online and bulk data entryAdded capability for the upload of supporting documentation (e.g., copy of agreement/order, details for accruals)Added triggers for the following actions:- Receipt and acceptance of invoice prior to payment- Prior approval of advancesUser profiles to distinguish buyers from sellersChange in ProcessCapture of MADEs in IPAC for signed agreements valued at $1 million or moreReplacement of push/pull functionality with invoice and approval (IPAC Wars) Seller initiates transactions in IPAC and the buyer reviews and approvesRequirement to report accruals in IPAC on a quarterly basisAbility to maintain a running balance for new agreements (Agreement Tracking)Schedule: The IGT Transformation initiative will be implemented in stagesA phased approach will allow agencies to change progressivelyNew screens will be introduced with each stage of the initiativeStrategy to Date (cont’d)IGT BackgroundFor over 16 years, Treasury has had a material weakness related to intragovernmental transactions (IGT) on the Financial Report of the United StatesBuy/sell transactions are a significant part of IGT differences, showing little improvement over time FIT and the Bureau of the Fiscal Service (BFS) conducted an alternatives analysis to identify a buy/sell technology solution to communicate accounting information between trading partnersAs a result, FIT and BFS recommended end-to-end improvements to IPAC to help automate the buy/sell processFIT and BFS decided to focus on IPAC enhancements in some areas and define the buy/sell process flowsComponent TAS: The field is parsed into the various components: Column 921 – 947 of the bulk file

- Position 1 and 2 = SP (Sub level prefix)- Position 3 through 5 = ATA (Agency Transfer Allocation)- Position 6 through 8 = AID (Agency Identifier)- Position 9 through12 = BPOA (Beginning Period of Availability)- Position 13 through16 = EPOA (Ending Period of Availability)- Position 17 = A (Account Type)- Position 18 through 21 = MAIN (Main Account)- Position 22 through 24 = SUB (Sub-Account)- Position 25 through 26 = blank (Filler)- Position 27 = CIPAC Component TAS Bulk File LayoutCurrently, the IPAC system is functioning post Release 12.3- SGL is optional in the IPAC system- IPAC only stores the SGL in the database

The Intra-governmental Payments and Collections (IPAC) system is proposing not to process Standard General Ledger (SGL) accounts within IPAC application (online and bulk file).- Online: The proposal is to modify the IPAC GUI- Bulk File: The proposal is to ignore processing of SGL data- Reports: SGL will removed from all reports, except IPAC Archived Data Reports

Minimum Accounting Data ElementsWhy are MADEs needed?Support the appropriate accounting of IGT buy/sell business events from initiation through settlement and facilitate reconciliationDesigned to capture data necessary to facilitate consistent recording, receipt and acceptance of goods and services, movement of funds between trading partners, effective reconciliation processes, and allow audit traceabilitySome MADEs may not need to be recorded in agency financial systems, but will be used to facilitate communication and understanding necessary for both trading partners to record and reconcile IGT transactions accuratelyMADEs are expected to be communicated between trading partners during agreement negotiations and entered into IPAC by the sellerStrategy to DateDeveloped standard business processes for buy/sell accounting activitiesDeveloped IPAC enhancements to meet standard business processesSocialized IPAC enhancements with a Tiger Team of nine major Departments/AgenciesDeveloped use cases to provide insight to IPAC user community6. Monitoring Agreement/Order BalancesProcess Flow5. Processing AdvancesProcess Flow4. Accepting & Rejecting InvoicesProcess Flow3B. Business Rules for Invoice ApprovalProcess Flow1. Processing Agreements Over $1MDescription of Use2. Uploading and Linking DocumentsProcess Flow3A. Setting Profiles for Invoice Approval Process FlowProfessor BorysAccount Statement: Live Demonstration